The Sherri's Retail Shop uses the FIFO retail inventory method to determine its ending inventory. The accounting records for the current year for Sherri's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \
\$ 362,250 & \$ 225,000 & \text { Purchases } \
73,000 & 55,000 & \text { Beginning inventory } \
385,750 & & \text { Sales } \
32,500 & & \text { Net markups } \
19,750 & & \text { Net markdowns } \
12,500 & & \text { Emplovee discounts }
\end{array}$
What is the cost-to-retail percentage to be used for ending inventory calculations?

Question

The Sherri's Retail Shop uses the FIFO retail inventory method to determine its ending inventory. The accounting records for the current year for Sherri's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \  
\$ 362,250 & \$ 225,000 & \text { Purchases } \
73,000 & 55,000 & \text { Beginning inventory } \
385,750 & & \text { Sales } \
32,500 & & \text { Net markups } \
19,750 & & \text { Net markdowns } \
12,500 & & \text { Emplovee discounts }
\end{array}$
 What is the cost-to-retail percentage to be used for ending inventory calculations?

Quizplus · Accepted Answer

The Answer of The Sherri's Retail Shop uses the FIFO retail inventory method to determine its ending inventory. The accounting records for the current year for Sherri's contained the following information: $\begin{array}{lll}
\underline{\text { Retail }}&\underline{\text {Cost}} \  
\$ 362,250 & \$ 225,000 & \text { Purchases } \
73,000 & 55,000 & \text { Beginning inventory } \
385,750 & & \text { Sales } \
32,500 & & \text { Net markups } \
19,750 & & \text { Net markdowns } \
12,500 & & \text { Emplovee discounts }
\end{array}$
 What is the cost-to-retail percentage to be used for ending inventory calculations?

The Sherri's Retail Shop Uses the FIFO Retail Inventory Method